PKN ORLEN and PGNiG start joint production from Miłosław E gas field

PKN ORLEN and Polskie Górnictwo Naftowe i Gazownictwo have started the production of natural gas from Miłosław E deposit. The facility is operated from a gas plant located 30 km away. This is another deposit in Greater Poland to be jointly developed by both companies.

Miłosław E gas field where the companies have started production is located in Płotki project area in the municipality of Miłosław (a district of Września, Greater Poland Province). It was appraised in 2015 during the drilling of Miłosław-4K well on Kórnik-Środa license (no. 32/96/p). The recoverable reserves were estimated at 680 million m3 of high-nitrogen natural gas, and the production of the reservoir is projected to last 18 years.

As part of the joint project, a modern, fully automated facility, which maintenance requires only periodic preservation and supervision, was established. The processes at this facility are hands free controlled from Radlin Natural Gas Plant located approx. 30 km away. The plant main functions are initial removal of contaminants, reduction of pressure and low temperature separation of reservoir fluids. Such prepared feedstock is transported via a dedicated 10-km pipeline to Winna Góra Production Centre, from where it is transmitted for further purification to Radlin Natural Gas Plant. After being adjusted its parameters to the gas fuel standards prior to sale, the gas is pumped into the national transmission system.

Last year, both companies launched gas production from Karmin field as part of the Płotki project. On the other hand in May 2017 the drilling of Miłosław-5K/H well was completed. The hydrocarbon flow obtained during field testing confirmed the commercial accumulation of natural gas. The commencement of the project activities aimed at the development and production of hydrocarbons is planned for the end of Q1 2019.

The area of the Płotki project comprises four licences in Greater Poland: Kórnik-Środa, Śrem-Jarocin, Jarocin-Grabina and Pyzdry. There are currently 8 deposits in their area where a joint production is being conducted with the amount of 2,800 BOE/D. PGNiG has 51% of shares and is the operator of the project. On the other hand, ORLEN Upstream, a special purpose vehicle of PKN ORLEN for the exploration and extraction of hydrocarbons, has the remaining 49% of shares. Another project where the companies cooperate in Greater Poland is Sieraków project which is currently at the exploration and appraisal stage. It was located in the Szczecin Basin in the vicinity of the largest discoveries of oil and natural gas reservoirs in recent years in Poland (Lubiatów-Międzychód-Grotów). In addition, PGNiG and ORLEN Upstream carry out joint operations in South Poland. The companies took seismic data acquisition, drilled exploratory wells and carried out flow tests as part of the Bieszczady project.